Friday, March 4, 2011

Excerpts from Seth Klarman's 2010 Letter

http://myinvestingnotebook.blogspot.com/2011/03/our-national-predicament-excerpts-from.html

Disaster hedging – always an important tool for investors – takes on heightened significance in today's unprecedentedly challenging environment. Yet, as this insight is not unique to us, the cost of insurance is high. There are no easy ways to navigate these turbulent waters. But because the greatest risks are of currency debasement and runaway inflation, protection against a currency collapse – such as exposure to gold – and against much higher interest rates seem like necessary hedges to maintain.

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